Security, education, healthcare gain as Treasury expands budget by Sh86 billion

Education, security, and healthcare have emerged as the biggest winners in the latest budget adjustments, as the government boosts allocations while slashing funds for water, housing, and energy.

The National Treasury has expanded the budget by Sh85.8 billion, excluding Sh5.5 billion earmarked for debt repayment under Consolidated Fund Services.

On Tuesday, the Treasury tabled the second supplementary budget in the National Assembly, raising Kenya's total budget for the financial year ending June to Sh3.56 trillion, up from Sh3.47 trillion.

Treasury is also seeking parliamentary approval for additional spending that ministries had not previously been allocated.

"Since the approval of the financial year 2024/25 budget, the National Treasury has received additional requests for funding to cater for emerging priorities and shortfalls under critical expenditure," the National Treasury said.

"Included in the Financial Year Supplementary Estimates II are additional expenditure to cater for salaries shortfall, security-related interventions, drought-related expenditure, among other emerging priorities," it said.

The adjustments cover salary increments, additional spending on priority projects, and increased collections from fines and fees.

Highest increase

Education has received the highest increase, with an extra Sh48.58 billion allocated across higher education, basic education, and vocational training.

The Teachers Service Commission (TSC) will receive Sh17.44 billion to hire more tutors.

Higher education institutions have been allocated an additional Sh15.58 billion, with Moi University in Eldoret receiving Sh1.8 billion to help address its financial struggles. Many universities have benefited from increased government funding following a rise in student fees.

Healthcare has also received a boost, with the State Department of Medical Services allocated Sh8.68 billion for the administration of referral hospitals. National referral and specialised services have received an additional Sh3.1 billion.

However, spending on housing, water, and energy has been cut to align with lower-than-expected revenue collections.

The State Department for Housing and Urban Development has had its development budget reduced by Sh13.94 billion, with human development and settlement projects being the most affected.

Allocations for water and sanitation have been reduced by Sh8.73 billion, including Sh7.28 billion cut from water and sewerage infrastructure development and Sh1.45 billion from water resource management. The State Department of Energy has lost Sh7.64 billion in funding.

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Despite revenue collection challenges exacerbated by anti-Finance Bill protests last year, the National Treasury says budget implementation is progressing smoothly.